Starting October 15, petrol pumps in Madhya Pradesh will no longer accept Unified Payments Interface (UPI) transactions exceeding ₹2,000. This decision comes in response to financial losses attributed to the newly implemented merchant discount rate (MDR). The move aims to mitigate the impact of these fees on fuel retailers.
A significant portion of fuel sales happens via UPI, and our fixed profit margins will be hit by this duty. The decision was taken unanimously at a meeting of the MP Petrol Pump Association, which represents 4,700 dealers statewide. Dealers said they will accept only cash for payments above ₹ 2,000, refusing to bear the 0.4% MDR introduced by the Centre.
Association president Ajay Singh said, “Petroleum dealers across the state are opposing the central government’s new policy. In a written statement, the association said that dealers were already paying MDR on credit card transactions. “Now, imposing this duty on UPI will only create further financial loss for us,” the note read. “The move will hit hard the consumers from rural areas as they are were using only UPI for payment,” said an association member.
